Compute the product margins for the Xtreme and the Pathfinder products under the activity-based costing system

Saved 5 EOC 20pts Problem 5-17 (Algo) Comparing Traditional and Activity-Based Product Margins [LO5-1, L LO5-5] Smoky Mountain Corporation makes two types of hiking boots--the Xtreme and the Pathfinder. Data concerning th lines appear below: Selling price per unit Direct materials per unit Direct labor per unit Direct labor-hours per unit Estimated annual production and sales Xtreme $ 115.00 $ 65.10 $ 10.00 1.2 DLHS 29,000 units Pathfinder $83.00 $ 50.00 $ 10.00 1.2 DLHS 71,000 units The company has a traditional costing system in which manufacturing overhead is applied to units based on direct concerning manufacturing overhead and direct labor-hours for the upcoming year appear below $ Estimated total manufacturing overhead Estimated total direct labor-hours 1,800,000 100,000 DLHS Required: 1. Compute the product margins for the Xtreme and the Pathfinder products under the company's traditional costing 2. The company is considering replacing its traditional costing system with an activity-based costing system that wor manufacturing overhead to the following four activity cost pools (the Other cost pool includes organization-sustainin capacity costs); Estimated Overhead Cost $ 520,000 781,000 440,000 59,000 $ 1,800,000 Expected Activity Xtreme Pathfinder Total 29,000 71,000 100,000 400 310 Activities and Activity Measures Supporting direct labor (direct labor-hours) Batch setups (setups) Product sustaining (number of products) Other Total manufacturing overhead cost 710 Compute the product margins for the Xtreme and the Pathfinder products under the activity-based costing system. COC 20pts Saved 2. The company is considering replacing its traditional costing system with an activity-based costing system that would assig manufacturing overhead to the following four activity cost pools (the Other cost pool includes organization-sustaining costs capacity costs): Estimated Overhead Cost $ 520,000 781,000 440,000 59,000 $ 1,800,000 Expected Activity Xtreme Pathfinder Total 29,000 71.000 100,000 400 319 710 Activities and Activity Measures Supporting direct labor (direct labor-hours) Batch setups (setups) Product sustaining (number of products) Other Total manufacturing overhead cost NA 4 Compute the product margins for the Xtreme and the Pathfinder products under the activity-based costing system 3. Prepare a quantitative comparison of the traditional and activity-based cost assignments Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the product margins for the Xtreme and the Pathfinder products under the activity-based costing system. (Round your intermediate calculations to 2 decimal places.) Xtreme Pathfinder Total Product margin $ 0